2015 form-10-k-and-strategy-discussion 041916-1

© 2015 Advanced Emissions Solutions, Inc. Company
All rights reserved. Confidential and Proprietary.
2015 Form 10-K & Corporate
Strategy Discussion
April 19, 2016

© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -2-
Safe Harbor
This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934,
which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include statements or
expectations regarding future growth or contraction, competition, timing and outcome of a strategic review of alternatives for our
EC business and execution of our “parallel path” approach, our ability to capitalize on our target markets and commercialize our
products and intellectual property and the ability of our products and technologies to assist our customers in complying with
government regulations; our ability to complete EC contracts, deliver on customer commitments and mitigate associated future risk;
future contracts, projects, and operations; amount and timing of production of RC, timing and terms of the lease, lease renewal or
sale of RC facilities and pipeline of tax equity investors, payments to CCS from tax equity investors and CCS cash flow and CCS’
ability to mitigate the risk of power plants converting from coal to natural gas; future revenues, royalties earned, expenses, cash
flow and use of cash, liquidity, debt and other financial and accounting measures; the value of our common stock and assets, and the
effect thereof on our cash flow; timing and outcome of our restructuring and cost containment efforts; future audit fees; our ability
to remain compliant with Securities and Exchange Commission (SEC) reporting obligations and be relisted on the NASDAQ Stock
Market LLC; scope, timing and impact of current and anticipated regulations and legislation; the outcome and timing of current and
pending legal proceedings and related matters. These statements are based on current expectations, estimates, projections, beliefs
and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could
differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to,
changes and timing in laws, regulations, IRS interpretations or guidance, accounting rules and any pending court decisions, legal
challenges to or repeal of them; changes in prices, economic conditions and market demand; the ability of the RC facilities to
produce coal that qualifies for tax credits; the timing, terms and changes in contracts for RC facilities, or failure to lease or sell
facilities; impact of competition; availability, cost of and demand for alternative tax credit vehicles and other technologies;
technical, start-up and operational difficulties; availability of raw materials; loss of key personnel; elevated spending on non-
recurring cash expenses may last longer than expected or reductions in operating costs may be less than expected; inability to
comply with the terms of the bridge loan; intellectual property infringement claims from third parties; the outcome of pending
litigation; the preparation and filing of our future financial statements and SEC periodic reports may take longer than expected;
seasonality and other factors discussed in greater detail in our filings with the SEC. You are cautioned not to place undue reliance
on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the
ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update
such statements unless required by law to do so.

Agenda
1. 2015 Financials Review
2. Assets & Intellectual Property
3. Strategic Alternatives: Emissions Control Segment
4. Cost Containment & Cash Preservation
5. Refined Coal Update
6. Emissions Control Update
7. 2016 Priorities & Expectations

2015: A Year of Transformation
 Financial filings now up to date
 Second half of year included numerous strategic priorities and decisions:
1. Realignment of our organization and management team,
2. Analysis, repositioning, and commercialization strategy of potential
opportunities within our Emissions Control (EC) segment,
3. Development of a plan to reinvigorate the identification and closing of
tax equity investors for our Refined Coal (RC) facilities,
4. Initial steps taken to reduce our cash burn to better preserve and
reprioritize our free cash flow.
► Announces parallel path strategy to continue to transform and accelerate
business fundamentals, while simultaneously evaluating strategic options for
the Emissions Control segment and its associated intellectual property assets.

2015 Financials Review
 Revenue (and associated expense) increased primarily due to completion of Emissions Control equipment contracts,
which significantly mitigated exposure to performance guarantees and warranties of our equipment contract
commitments
 Earnings from Clean Coal Solutions (“CCS”) and Clean Coal Solutions Services (“CCSS”), collectively called the RC business
or RC segment, are the most significant contributors to the equity method investments line item; and, while distributions
were lowered by a number of factors, the baseline performance of the RC business showed solid and consistent results in
2015:
 CCS increased production of RC by 35% and the number of installed RC facilities by 38%
 CCS’s net income available to class A members increased from $68 million in 2014 to $87 million in 2015 (28%
increase)
 CCS increased the generation of specified tax credits by 66% for the owners’ accounts from $47 million in 2014 to
$78 million in 2015
► Net income decreased primarily driven by the timing of cash distributions from the RC business (see footnote 7 of the
2015 Form 10-K)
Statement of operations data: (in thousands) 2015 2014 2013
Revenues $62,739 $16,923 $13,286
Earnings (loss) from equity method investments 8,921 42,712 15,502
Royalties, related party 10,642 6,410 2,505
Net income (loss) (30,141) 1,387 (15,987)
Earnings (loss), per common share, basic (1.37) 0.06 (0.78)
Earnings (loss), per common share, diluted (1.37) 0.06 (0.78)
(1) See Regulation S-X Rule 3-09 financial statements included in Exhibit 15 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
(1)

Major Components of Net Loss
Major Components of 2015 Net Loss Amount (millions)
GAAP Net Loss ($30.1)
Non-Cash Items ($13.9)
EC Manufacturing, R&D Businesses/Ventures ($10.0)
Restatement Expenses ($9.5)
Restructuring Expenses ($5.4)
RC Segment Income $12.1
Total of Major Components of Net Loss ($26.7)
 Overview of the broad components of the 2015 consolidated net loss:
 Reviewing the pro-forma effects of certain strategic decisions, eliminations of
certain one-time expenses, and non-cash charges
(1) See Appendix A of this document for further detail.
(1)

Undervalued Stock Price +
Underappreciated Assets
Value Potential Amount (millions)
CCS Tax Equity Investor Payments (2016-2021) $ 650
- Cumulative SG&A Estimated for CCS (2016-2021) ($ 54)
CCS Net Cash Flow $ 596
---------------------------------------------------------------------
ADES Undiscounted 42.5% Share of CCS Net Pre-Tax
Cash Flow
$ 253
- ADES Current Market Cap (as of 4/18/16) $ 136
Missing Value? $ 117
 ADES Stock Price on 4/18/16 was $6.46 and its Market Cap was $136 million
 Payments from only 12 of CCS’s current RC facilities leased or sold to tax equity investors
are projected to be $650 million from 2016 to 2021; assuming no modifications of
contracts, non-renewals or early terminations
 The current stock price does not currently reflect this $117 million and it does not reflect
the assets listed on the next slide

Undervalued Stock Price +
Underappreciated Assets, continued
Assets Financial Drivers
Refined
Coal
Assets
CCS Investment - Tax
Credits
• 16 facilities not yet invested
• $3-4 per ton
• $8-14M potential cash flow per year, per invested facility before CCS SG&A – ADES gets 42.5%
CCSS Investment - Utility
Operations
• $0.14-$0.17 per ton
• $0.4-$0.8M potential cash flow per year, per operating facility – ADES gets 50%
Royalty Associated with
Exclusive Technology
License
• $0.40-$0.45 per ton
• $1-2M potential cash flow per year, per operating RC facility using the M-45™ Technology – ADES gets
100%
Emissions
Control
Assets
Coal Additives
• Various Technologies
• Patented technologies with broad market and developing international market opportunity
• Significant market opportunity to sell products
• Pursue strategic alternatives on a parallel path
Equipment
• ACI , DSI & Other
• Largest ACI installed base within US utilities
• Minimal opportunity in 2016, but modest future as MATS matures
• Pursue strategic alternatives on a parallel path
ADES
(Corporate)
Tax Credits and NOL’s
• Usage not dependent on new tax equity investors
• $121M tax credits and NOLs, although a significant portion would be used on previous slide
• Future income from current RC contracts, may be available even in a change-of-control event
 The current stock price does not currently reflect any value for the assets listed below, let alone the $117 million
undervaluation on the previous slide
 Unidentified liabilities must also be considered when valuing stock price. The Company mitigated potential
equipment contract liabilities significantly in 2015. Other significant continuing liabilities include Norit royalty
indemnification and resolution of SEC Inquiry and other litigation referenced in the 2015 Form 10-K.

Parallel Path & Strategic Alternatives Process
 Hired investment banker to explore strategic alternatives around all or a
portion of the Emissions Control (EC) portfolio of products and
intellectual property (IP)
 Also entertaining discussions with IP experts around other
monetization strategies for key patents and IP
 Strategic reviews expected to be complete by the end of fiscal 2016
 Will continue to execute aggressively against strategic goals and priorities
to position the Company whether as an independent entity or part of
another entity

Cost Containment, Risk Mitigation & Cash
Preservation Initiatives
2015
 Reduced corporate and operating headcount
by over 40 positions between May and
December 2015
 Eliminated BCSI manufacturing/fabrication
facility (including 100+ in headcount) in
McKeesport, Pennsylvania with all operations
closed by end of 2015
 Eliminated ADA Analytics and its Israeli
operations in August and exited seven staff
positions by end of 2015
 Eliminated virtually all R&D activities to
unburden operations (segment previously
focused on DOE and other third party
support)
 Significantly mitigated potential warranty
and performance guarantee exposure
2016
 Announced further reduction of headcount
by approximately 30%, which is expected
to be completed by Q3’16
 Expect to complete all restatement
activity and resume normal accounting
practices within the first half of 2016;
audit related fees to start declining in
Q2’16
 Expect to further complete ACI and DSI
systems installations and further mitigate
risk throughout the year (and release
restricted cash)
 Pursue settlement of SEC Inquiry and
related litigation, which are related to the
accounting restatements

$0.0
$12.5
$25.0
$37.5
$50.0
($millions)
Expected Go Forward Overhead Cost Base
$45M
$12 - $14M
~70% Reduction in SG&A, Manufacturing
and Payroll Costs
(1) Cost Base represents total estimated SG&A and Payroll Expenses. Includes all operating expenses other than cost of revenue items, depreciation and amortization.
(2) Boxes for display purposes only and not drawn to exact scale.
(1,2)

Full-time Operations Roadmap
POTENTIAL
28 RC facilities in full-time
operation
Target remains 24 invested
and 4 retained
(75-100 MT/Year)
9 RC facilities installed
2016 2021As of December 31, 2015
12 RC facilities
leased/sold
(37.7 MT/year)
2 RC facilities retained
(11.7 MT/year)
Operating
Not Operating
5 RC facilities to be
installed
RC Facilities Today and Tomorrow

Refined Coal: Components of Earnings
Components of RC Segment Earnings 2015 2014
RC Segment Earnings
CCS $ 8,651 $ 43,584
CCSS $ 4,838 $ 3,625
RCM6 $ (4,568) $ (4,497)
Consulting $ 55 $ 665
Royalties, related party $ 10,642 $ 6,410
Total RC Earnings $ 19,618 $ 49,787
RC Segment Expenses
RCM6 note payable interest expense $ 2,468 $ 2,245
453A interest expense $ 4,639 $ 3,371
Consulting fees $ 279 $ 1,444
Other $ 101 $ 633
Total RC Expenses $ 7,487 $ 7,693
Segment Operating Income $ 12,131 $ 42,094
(1) See Appendix C of this document for further details related to refined coal segment earnings and operating income.
(1)

Non-GAAP Reconciliation of 2015 Net Income to
2015 Distributions
Amount
(millions)
ADES
Share
Net Income Available to Class A Members $87.3 $35.3
- Change in Deferred Revenue ($43.2)
- Change in Prepaid Expenses & Other Assets
(primarily shortfall payment related to chemical Master Supply Agreement)
($13.7)
- Capital Expenditures ($30.1)
+ Other Adjustments $20.1
Total 2015 Distributions from CCS to Class A Members $20.4 $8.7
Refined Coal: 2015 Distribution Discussion
 2015 RC distributions were lower as capital was strategically used to 1) generate tax credits on
five retained RC facilities, 2) install eight additional RC facilities; and, 3) fund working capital
needs to assure adequate supplies of key chemical additives for future operations
(1) See Appendix B of this document for further detail.
(2) CCS Net Income (and cash available for distribution) was also reduced by costs of sales and other operating expenses associated with the
operation of retained facilities within an estimated range of $35-$41 million, resulting in the generation of tax credits for the benefit of CCS
equity owners in the amount of $78.8 million, based upon total retained tons of coal of 11,744 and an estimated production cost per ton of
refined coal of $3-$3.50 per ton.
(1)
(2)

Refined Coal Momentum Building
 Modified sales process and expanded broker network in second half of
2015 to help support and accelerate discussions with tax equity investors
 Now targeting multiple levels and departments; such as, tax, c-suite, and
other critical levels to accelerate approval process
 Pipeline quality, breadth and depth has improved dramatically
 Have the ability to move RC facilities to mitigate coal to gas switching
 Coal remains a key component of today’s energy markets and while RC
markets are competitive, deals are getting done at strong economics
 Refined coal has successfully completed numerous IRS audits
 Expect to make substantial progress in identification and onboarding of
new tax-equity investors by the end of 2016

RC Cash Flow Significant Today with
Strong Growth Potential
 Renewals in-line with expectations
 Tax-equity investor returns remain consistent with prior performance
 CCS (ADES 42.5%) expected payments from tax-equity investors of nearly $650
million(1) between 2016 and 2021 based exclusively on the 12 RC leased facilities
in place today and assuming no modifications of leases, non-renewals or early
lease terminations
 ADES portion is approximately $250-260 million, ASSUMING a $50-$60M
cumulative CCS SG&A over the next six years
 Each new facility generates the following per year
 CCS – 42.5% of $8-$14 million less CCS SG&A
 CCSS – 50% of $0.4-$0.8 million
 M-45 Royalty -100% of $1-$2 million
 Ability to mitigate coal to natural gas switching by relocating facilities
(1) Schedule represents annually renewable fixed payments to be paid by tax-equity investors through December 31, 2021, assuming no
modifications of contracts, non-renewals or early terminations.

Emissions Control Update
 ACI & DSI Systems drove revenues in
2015
 Post MATS, opportunities still
exist but equipment will be lower
 Will continue to deliver on our
commitments to customers which
will further de-risk business
► Shifted focus and resources to
Chemicals and Services opportunities
► Overhauled and streamlined sales and marketing approach to focus on high
return opportunities
► Goal is for EC business to be breakeven within 4-6 quarters
► In early stages of assessing value of intellectual property and patents

2016 Priorities & Expectations
 NASDAQ Relisting & SEC Compliance with financial filings
 Drive New RC Closings & Incremental Cash Flows
 Each new tax-equity investor, above the current, drives $3-6 million in annual cash
flow to ADES through 2021
 Continue to Commercialize Emissions Control Products and IP
 Solid progress on positioning business to breakeven within 4-6 quarters (e.g. not
relying on CCS cash flows)
 Implement Remaining Cost Controls
 Quarterly reductions throughout 2016; enter 2017 with new run rate
 Enhance Cash Flow and Liquidity Profile
 Eliminate debt as soon as it makes sense
 End 2016 with better liquidity profile than when we started
 Evaluate Strategic Alternatives to Ensure Proper Value

Appendix A – Non-GAAP Disclosure
ADES Significant Cash and Non-Cash Components of 2015 Net Loss
Ref. Amount Footnotes :
Net Loss (1) (30,141)$ (1) Agrees to ADES Consolidated Statement of Operations in the 2015 Form 10-K filing
(2) Agrees to ADES Consolidated Statement of Cash Flows in the 2015 Form 10-K filing
Non-Cash Charges: (3) Agrees to ADES "Management Discussion and Analysis" in Item 7 in the 2015 Form 10-K filing
Depreciation and Amortization (2) (2,019) (4) Agrees to ADES Footnote 2 in the 2015 Form 10-K filing
Amortization of Debt discount/issuance costs (2) (987) (5) Agrees to ADES Footnote 13 in the 2015 Form 10-K filing
Impairment of Property, Equipment, Intangibles (2) (2,087) (6) Agrees to ADES Footnote 8 in the 2015 Form 10-K filing
Provision for Bad Debts and Note Receivable (2) (633) (7) Agrees to ADES Footnote 6 in the 2015 Form 10-K filing
Interest Costs Added to Principal Balance of Notes Payable (2) (923) (8) Agrees to ADES Footnote 7 in the 2015 Form 10-K filing
Share Based Compensation Expense (2) (7,204) (9) Agrees to ADES Footnote 11 in the 2015 Form 10-K filing
Other (2) (40) (10) Agrees to ADES Footnote 17 in the 2015 Form 10-K filing
Total Non-Cash Items (13,893)
(11) Represents immaterial items included in Clean Coal Segment Income that are not otherwise
specifically disclosed in the Company's annual report on Form 10-K.
Significant Cash Items: Non-GAAP Disclosure Notes:
Research and Development Expenses (excluding non-cash impairment
charges) (7) (3,462)
Losses -- legacy EC-Manufacturing segment (3) (6,622)
(10,084)
Restatement Expenses (3) (9,500)
Restructuring Expenses (net of non-cash charges) (4) (10,371)
Less non-cash Share Based Compensation (5) 3,100
Less non-cash impairment charges (4) (6) 1,900
Restructuring Expenses--Cash (5,371)
Total Significant Cash Items (24,955)
RC Segment Items:
CCS Equity Earning (8) 8,651
CCSS Equity Earnings (8) 4,838
Losses attributable to RCM6 (8) (4,568)
Earnings from Equity Method Investments 8,921
Royalties--Related Party (1) 10,642
Imputed interest on RCM6 Note (9) (2,468)
Interest--453A (9) (4,639)
Other (11) (325)
Segment Income--RC (10) 12,131
Total Significant Cash and Non-Cash Components of 2015 Net Loss (26,717)$
This non-GAAP summary of significant Cash and Non-Cash Components of the Company's 2015 net
loss is being provided to investors as supplement to the Company's reported results and should
not be considered in isolation, as a substitute for, or as superior to, financial measures calculated
in accordance with U. S. GAAP, and the Company's financial results calculated in accordance with
GAAP and supplemental information regarding information otherwise disclosed in such financial
statements should be carefully evaluated. This non-GAAP summary of significant Cash and Non-
Cash Components of the Company's 2015 net loss is being provided to Investors because the
Company believes that such supplemental information will assist Investors in their understanding
of significant financial components that contributed to or otherwise reduced the Company's 2015
consolidated net loss. The Company's management uses this non-GAAP measure for similar
purposes.

Appendix B – Non-GAAP Disclosure: Clean Coal Solutions, LLC
Reconciliation of 2015 Net Income Available to Class A Members to 2015 Distributions
Ref. Amount ADES Share ADA %
2015 Net Income Available to Class A Members (1) (3) 87,326$ (b) 35,265 40.38% (a)
Class B Holders Preferred Return (3) 6,157
Non-Cash Items:
Depreciation, Amortization and other adj to net income (4) 7,795
Effects of Changes in Operating Assets and Liabilities:
Deferred Revenue (4) (43,178)
Prepaid Expenses & Other Assets (primarily shortfall payment related to chemical Master Supply Agreement)(4)(5) (13,688)
Other Changes in operating assest and liabilities (4) 4,014
Total Non-Cash Items and Effects of Changes in Operating Assets and Liabilities (45,057)
Noteable Cash Items:
Capital Expenditures (4) (30,061)
Noncontrolling member contribution receivable (4) (269)
Total Noteable Cash Items (30,330)
Other Changes in Cash:
Borrowings (4) 4,534
All Other (6) 37
Net Change in Cash (4) (2,313)
2015 Distributions to Class A Members (4) 20,354$ (1) 8,651 42.50%
Estimated Economics of 2015 Retained Coal Operations:
Tax Credits Generated (6) 78,800$
Tax Credit per Retained Ton (2) 6.71$
Retained Tons (2) 11,744
Estimated Operating Expense per Ton of Retained Coal $3-$3.5 Per Ton
Total Estimated Range of Operating Costs and Expenses $35 to $41 Million

Appendix B – Cont.
ADES Footnotes :
(1) Agrees to ADES Footnote 7 in the 2015 Form 10-K filing
(2) Agrees to ADES "Business" in Item 1 in the 2015 Form 10-K filing
CCS Footnotes :
(3) Agrees to CCS Consolidated Statement of Operations in Item 15 of the ADES 2015 Form 10-K filing
(4) Agrees to CCS Consolidated Statement of Cash Flows in Item 15 of the ADES 2015 Form 10-K filing
(5) Agrees to CCS Footnote 10 in Item 15 of the ADES 2015 Form 10-K filing
(6) Recalculated from residual items in CCS Consolidated Statement of Cash Flows
Other Footnotes:
(a) The amounts of the Company's 42.5% proportionate share of net income as shown in the table
above differ from mathematical calculations of the Company’s 42.5% equity interest in CCS
multiplied by the amounts of Net Income available to Class A members as shown in the table above
of CCS results of operations due to adjustments related to the Redeemable Class B preferred return
and the elimination of CCS earnings attributable to RCM6, of which the Company owned 24.95%
during the year ended December 31, 2015
(b) CCS Net Income (and cash available for distribution) was also reduced by costs of sales and
other operating expenses associated with the operation of retained facilities within an estimated
range of $35-$41 million, resulting in the generation of tax credits for the benefit of CCS equity
owners in the amount of $78.8 million, based upon total retained tons of coal of 11,744 and an
estimated production cost per ton of refined coal of $3-$3.50 per ton.
Non-GAAP Disclosure Notes:
This non-GAAP reconciliation is being provided to investors as supplement to the Company's
reported results and should not be considered in isolation, as a substitute for, or as superior to,
financial measures calculated in accordance with U. S. GAAP, and the Company's financial results
calculated in accordance with GAAP and reconciliations to those financial statements should be
carefully evaluated. The non-GAAP reconciliation is being provided to Investors because the
Company believes that such reconciliation will assist Investors in their understanding of the
relationship of Net Income Available to Class A Members to cash amounts that are ultimately
distributed to such members, and the effects upon distributions that certain other cash and non-
cash financial items might have. The Company's management uses this non-GAAP measure for
similar purposes.

Appendix C – Non-GAAP Disclosure
ADES Significant Components of 2015 and 2014 segment earnings and
operating income
Ref. 2015 Ref. 2014 Footnotes :
(1) Agrees to ADES Footnote 7 in the 2015 Form 10-K filing
RC segment earnings: (2) Agrees to ADES Footnote 17 in the 2015 Form 10-K filing
CCS (1) 8,651$ (1) 43,584$ (3) Agrees to ADES Consolidated Statement of Operations in the 2015 Form 10-K filing
CCSS (1) 4,838 (1) 3,625 (4) Agrees to ADES Footnote 11 in the 2015 Form 10-K filing
RCM6 (1) (4,568) (1) (4,497) (5) Agrees to ADES Footnote 14 in the 2015 Form 10-K filing
8,921 42,712
Consulting (2) 55 (2) 665
Royalties, related party (2)(3) 10,642 (2)(3) 6,410
19,618 49,787 Non-GAAP Disclosure Notes:
RC segment expenses:
RCM6 note payable interest expense (4) 2,468 (4) 2,245
453A interest expense (4) 4,639 (4) 3,371
Consulting fees (5) 279 (5) 1,444
Other (6) 101 (6) 633
7,487 7,693
Segment operating income (2) 12,131$ (2) 42,094$
This non-GAAP summary of significant Components of the Company's 2015 and 2014 RC
segment earnings and operating income is being provided to investors as supplement to the
Company's reported results and should not be considered in isolation, as a substitute for, or
as superior to, financial measures calculated in accordance with U. S. GAAP, and the
Company's financial results calculated in accordance with GAAP and supplemental
information regarding information otherwise disclosed in such financial statements should
be carefully evaluated. This non-GAAP summary of significant Components of the
Company's 2015 and 2014 RC segment earnings is being provided to Investors because the
Company believes that such supplemental information will assist Investors in their
understanding of significant financial components that contributed to the RC segment
earnings and operating income in 2015 and 2014. The Company's management uses this non-
GAAP measure for similar purposes.
(6) Represents immaterial items included in RC segment Income that are not
otherwise specifically disclosed in the Company's 2015 Annual Report on Form 10-
K.
Years Ended December 31,

2015 form-10-k-and-strategy-discussion 041916-1

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